Magellan drills ahead in Qld CSM and Cooper Basin oil

MAGELLAN Petroleum and Energy Investments have spudded the Burrum-1 well, the first of two coal seam gas exploration wells in ATP 613P in the Maryborough Basin, southeast Queensland.

The wells are designed to evaluate the coal seam potential of the previously unexplored Burrum Coal Measures in the northern portion of the Burrum Syncline.

The company said Burrum-1 was drilled to a total depth of 438m and several coal seams were intersected and sampled for desorption analysis.

Eureka Petroleum, a wholly owned subsidiary of Energy Investments, is funding 100% of a two-stage CSM exploration program in return for a 90% working interest in the Burrum Syncline farm-in area.

Magellan said Stage 1 comprises the current two-well program and it has the right to back-in to retain up to a 50% participating interest in any development by matching Eureka’s prior expenditures.

Operator Magellan holds a 10% stake in Burrum-1, while Energy Investments owns 90%.

Meanwhile, in the Santos-operated Cooper Oil Project, Magellan reports that the Muthero-5 appraisal well in the Nockatunga Block, southwest Queensland has been cased and suspended as a future oil producer.

Magellan today said Muthero-5 in PL 51 spudded on February 23 and oil shows were recorded in the Murta Member and the Birkhead Formation.

It has now been cased and suspended as a future oil producer, it said.

The Muthero-6 appraisal well spudded on March 4 and surface casing was set at 218m.

Magellan said as of yesterday, the well was at a depth of 792m and drilling ahead to the programmed total depth of 1442m below the rotary table.

Santos holds a 61% stake and is operator of the Nockatunga program, while Magellan has 39%.